ABC Rentals of San Antonio, Inc. - Page 26

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               In addition, each Entity's 1991 and 1992 experience data               
          indicates that, per category of rental units consisting of all              
          rental units having the same initial term, the actual average               
          total amount of gross rental the Entities received under all                
          rental contracts for a rental unit in such category was the                 
          product of the initial cost to the Entity of such rental unit               
          times the following delineated integer:                                     
          Initial Term                                  Integer                       
          Months                               Guaranteed        ABC                  
          12             3.1                                     3.0                  
          15                                 2.7                 3.4                  
          18                                 3.0                 3.2                  
          19                                 2.6                 2.5                  
          20                                 3.2                 2.8                  
          21                                 3.0                 3.1                  
          An integer of 3.0 represents a gross return of 300 percent of               
          initial cost.  Thus, petitioners' experience indicates that the             
          total amount of gross rental received on rental units                       
          approximated 300 percent of their initial cost, the percentage              
          the parties stipulated that the total gross rental anticipated to           
          be received on each rental unit would equal.                                
               Petitioners provided data only for the 1991 and 1992                   
          calendar years.  Since such data for the years at issue was not             
          readily available without resorting to significant expense,                 
          experience data derived from the 1991 and 1992 calendar years was           
          utilized.  The parties stipulated that petitioners' business                
          operations and surrounding market conditions remained essentially           
          unchanged from the years at issue through the years in which such           


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Last modified: May 25, 2011